Hunter coal mines will survive carbon tax

Climate Change Minister and Charlton MP Greg Combet stood firmly in front of the stacks at Newstan Colliery as he delivered the message that Hunter coalmines would not be affected by the controversial carbon tax.

The minister for climate change said he wanted to be at a coalmine in his own electorate yesterday when the Labor government’s tax on the country’s heavy polluters came into effect.

Opposition leader Tony Abbott said the carbon tax would force Hunter coalmines to close and the NSW Minerals Council said thousands of mining jobs would be lost in NSW as a result of the tax.

Mr Combet steadfastly denied that would be the case and was spruiking the benefits of the tax when it was less than 24-hours old.

‘‘One thing is certain that the sun has come up today and with the carbon price starting the world has not come to an end,’’ Mr Combet said.

‘‘One of the forecasts that Tony Abbott made was that the coal industry would die, it would be the end of the coal industry.

‘‘I wanted to be here at a coalmine in my own electorate, in my own region because I represent many coalminers and production is happening today and the coal industry has a very bright future.’’

His confidence about the future of mining in the Hunter would have been little consolation for the 450 workers sacked from Hydro Aluminium and the 100 from Tomago Aluminium that lost their jobs.

Hydro management said low metal prices and the high Australian dollar were the main reasons for closing the Kurri Kurri plant but the onset of the carbon price was a contributing factor.

Tomago Aluminium boss John Lemberg offered a similar response earlier in the year when he was forced to sack 100 employees.

‘‘The company itself, Norsk Hydro, made absolutely clear that the reason the smelter at Kurri Kurri closed down was because of low aluminium prices and the high value of the Australian dollar.

‘‘And the very important factor that the NSW government was not able to go far enough on an electricity contract to ensure the viability of that facility.

‘‘It’s completely deceitful to be suggesting that’s it’s responsible for its closure.’’

State member for Newcastle Tim Owen refuted the claim by Mr Combet saying it was the previous state Labor government that did not provide certainty for the Hunter aluminium industry in uncertain times.

‘‘The approvals for contracts and development applications to expand and modernise the plant were not forthcoming from the previous government,’’ Mr Owen said.

‘‘This was at a time when there was a lot of uncertainty because of the advent of the carbon tax.’’